KNOXVILLE, Tenn.–Consumers—and credit unions–are being warned about yet another credit card scam, in this case, the “Ghost Tap.”

The scam has been growing, with authorities saying police around the country tracking down some of the criminal rings involved, which are primarily made up of Chinese nationals who are engaged in substantial credit card fraud across several states, according to several reports

The Knox County Sheriff’s Office, for example, said it has made 10 arrests in a case involving individuals who have been utilizing digital wallet apps to facilitate their illegal activities, traveling from states like California, New York, and Texas, and targeting areas they believe to be less vigilant about these sorts of crimes. 

How it Works

The “Ghost Tap” scam operates by loading stolen credit card information into a digital wallet app, which is then quickly used to purchase gift cards. These cards are then sold through online platforms, effectively laundering the stolen funds. 

In its statement, the sheriff’s office said it is estimated financial institutions are losing millions of dollars on a weekly basis to the scam.